Protecting Your Money by Responding to Stockbroker Fraud
In Part 1 of this series, we identified a sampling of types of stockbroker fraud. In Part 2, we discussed ways to avoid becoming the victim of an investment scam or stockbroker fraud. In our final post, we discuss what to do if your preventative measures fail to keep you from falling prey to a stockbroker’s unscrupulous behavior. You can protect your money
Dealing with Stockbroker Fraud
There are several actions that can be undertaken after uncovering fraud, and some things that should be done to recover the money you’ve lost as a result of stockbroker fraud.
Call a Stockbroker Fraud Lawyer
If you think you have been someone’s prey in an investment fraud scheme, contacting a qualified investment fraud attorney first can be one the smartest and most important thing to do. Fraud, like many other illegal activities, has a statute of limitations. You need to make sure you protect your rights within the timeframe specified by the law or you could forfeit your right to recover anything, no matter how guilty the perpetrator is. An experienced stockbroker fraud lawyer should be able to review your case and provide you with advice on how to proceed.
Escalate Your Complaint to a Higher Level
If you are dealing with an individual stockbroker, you also can contact the broker’s supervisor to express that you believe the broker might have engaged in misconduct. If the supervisor doesn’t help, or will not help, which often is the case, you should immediately contact an investment fraud lawyer.
Importantly, even if the supervisor represents that they will investigate your claims, you still should contact a stockbroker misconduct lawyer. To avoid getting sued, many brokerage firms will not disclose to an investor that they believe that the broker did something wrong. An independent analysis of your claims by an experienced investment fraud lawyer likely will give you the most accurate opinion of the nature and extent of misconduct that has been committed.
File an Arbitration Claim or Lawsuit
Suing the brokerage firm may not be the first thing that should be done, but it often is the only means of recovering investment losses. Brokerage firms rarely offer to pay investors for investment losses if the investor has not forced the brokerage firm’s hand by filing a FINRA arbitration claim or lawsuit against the brokerage firm. [Note: Most brokerage firms require that disputes with investors be filed through FINRA’s arbitration system rather than through the court system.]
An Attorney May be Best at Responding to Stockbroker Fraud
This brings us back to our first tip, which is consulting an experienced investment fraud lawyer: an attorney can help you identify the nature and extent of the wrongdoing and the strengths in your case, and advise you on the best way to proceed. An experienced stockbroker fraud attorney can help you navigate the FINRA arbitration system.
Most stockbroker fraud lawyers work on a contingency-fee basis, which means that they only get paid when and if they help you recover money. Their fee typically is a percentage of the money that they recover for you.
Call a Stockbroker Fraud Attorney Today
If you have suffered a loss because your broker or brokerage firm misrepresented or omitted crucial information before you invested, you may have legal rights that require your immediate attention.
Contact an attorney today to schedule an appointment or consultation to review your rights and options.